All Eyes Are On One Particular S&P 500 Stat

Thursday's 2% drop in the S&P 500 put the index at 1,928,
down 4.5% from its September 19 high of 2,019.

This is one of the more notable pullbacks we've seen in what has
been a very low-volatile rally in the stock market. In fact, the
S&P 500 hasn't closed below its 200-day moving average (DMA)
since November 20, 2012.

"All eyes will be on the 200 DMA for the SPX
today," MKM Partners' Jonathan Krinsky writes.
"That currently comes in at 1905, which is also the area
of the August lows."

"We continue to expect that the SPX Cash will test its 200 DMA
before this correction is over," Krinsky writes. "At that point
we can evaluate the structure to determine of a bigger pullback
is at hand."

Krinsky notes that the Equal
Weight S&P 500 actually closed below its 200-DMA for the
first time since November 2012. (Unlike the S&P 500, which
weights each stock by market cap, the Equal Weight index gives
each of the 500 companies equal weight in the index.)